student loan and credit score??

Question

Does applying for a student loan affect you credit score
I just recenlty applied through and new lender and then did a credit history on my and my score dropped a few points


could this be the case????

Answer 1

Yes...credit agencies record the number of times your credit report is accessed by lenders in the last 24 months. Too many of these "inquiries" drop your credit score. After 24 months, the inquiry is removed from your report. Accessing your own credit report or inquiries made for auto loans, credit account maintenance, or promotional inquiries aren't counted.

Answer 2

Yes initially applying for any kind of loan (home, car, student, personal) makes your credit score dip a little. However, once you start making about 6 timely payments, your score goes up much more than the dip. Also, when you are 'shopping' around for the best loan rates, you can visit many different lenders and have them check your credit with it only taking one hit. For example, if you are buying a new car, you can look at like 5 different lenders to see which would be best but your credit will be affected in the same way as if you had only seen one. Good luck!

Answer 3

Hello There,

First of all, when applying fo rstudent loans, for both federal stafford and direct loans there is NO credit report required..

When applying for student loans, everything is based on income... Income from parents, and yourself...

The only time a credit reort is required is when you are doin ga Plus Loan (which is a loan only done by your parents, meaning your credit again would never be pulled)


So, it has to be something else...

Just as the other responders have noted, when you have your creidt pulled it does drtop your credit score... If you shop for a car, credit card, mortgage, etc. your score drops each and very time you have your credit ran...


But again, when getting student loans, there should be NO credit report ran...

I work with a Student Aid Lending.. We are a nationwide lender administered by the Department of Education...

I would be happy to answer any additionaly questions you may have, or even assist you in getting the loans you desire... We can help you consolidate existing loans as well...

Feel free to call or email me at any time..

Hope this helps!

Jason Fry
Student Aid lending
1-800-964-0642 Ext. 114
[e-mail]

Answer 4

You don't say if your loans are subsidized or unsubsidized or if the loans are in your name only. As in the other answer, try a retail credit card or a secured card. Make sure you pay off whatever you use every month. Of course with a secured card you would have to redeposit the amount used every month. Make small purchased so you can pay them off. Do not carry a balance. Try making two payments in one month. Two payments in one month shows up as two payments made on time on your credit report. You can build credit faster that way. The best way to build credit if you can afford it is a car payment. I have no idea why your loans are showing up as bad credit, you may want to talk to the lender and find out what/why they are reporting to the credit agencies.

Answer 5

every time you apply for credit it affects your score. that's because lenders think that you are going to get credit from a lot of places and then wont be able to pay.

Answer 6

Also, it drops between 2-5 point for each "inquiry"